Interest-free Payday Loan Without Interest – So You Get the 0% Interest

Want to borrow money without paying interest? That’s the dream of every borrower. Sounds like an April Fool’s joke? But it is not. Here are the exact terms and how to apply for an interest-free payday loan.

Make application online: here’s how it works

Make application online: here

The application is quick and easy, as expected from a modern online payday loan. The money will be paid out to you immediately after successful online examination. Select 1,000 Euro as the amount and 36 months as the term. A table with different providers appears. The offer in the first place has an interest rate of 0%, as long as the action runs.

The exact conditions

The exact conditions

The offer is valid under the following conditions: You borrow exactly 1,000 euros. You have exactly 3 years to pay the money back. The type of use is optional. In detail it looks like this:

Representative example

    • fixed borrowing rate: 0.0%
    • annual percentage rate: 0.0%
    • Net loan amount: 1,000 euros
    • Duration: 36 months
    • Processing fee: none
    • Monthly rate: € 27.61 at exactly these conditions
    • Exclusive Deal

What is a payday loan without interest?

What is a payday loan without interest?

A bank usually lends money to make money from lending itself. For this it demands a payment, the so-called interest. The interest is added to the loan amount. So the debtor has to pay more money in the end than he borrowed. That’s the way it usually works. A loan without interest works differently. The bank does not charge the customer for the loan. The customer pays exactly back the amount he has taken. So if you take out a 1,000 euro loan, you just have to repay this sum.

What is an interest-free payday loan not?

What is an interest-free payday loan not?

Of course, an interest-free payday loan must be paid back. Interest-free means only that you as a borrower do not have to pay any interest to the bank. However, this does not release him from the obligation to repay. The money borrowed naturally belongs to the bank, and must be paid off like a normal installment loan.

Action expired or application rejected?

Action expired or application rejected?

The promotion has expired? Or the pledge by the bank did not work out? You need an alternative? We have researched some possibilities for you.

      • if it should be cheap: here’s the installment loan comparison
      • if it should be flexible: frame loan comparison
      • if it has to be fast: other alternatives for quick loans
      • if it’s in a hurry: still get money on the account today

Actual Annual Interest Rate and Consumer Loan

The beginning of the year usually brings some changes. One of them is the one that came into force on January 1, 2013 and concerns the Consumer Credit Act. It has implemented the European Union requirements set out in Commission Directive 2011/90 / EU of 14 November 2011.

APRC should be counted in the same way.

APRC should be counted in the same way.

The purpose of this directive is to set the same way in the European Union countries for calculating the actual annual interest rate for consumer loans. The same way of calculating this indicator is intended to enable consumers to compare offers from lenders in EU member states. This method is based on the adoption of new assumptions to calculate the actual annual interest rate for loan agreements providing for different ways of using the loan.

Until now, depending on the method of using the loan, the costs of credit incurred by the consumer may have been different. The new way of calculating the actual annual interest rate is to change this. Currently, lenders offering loans to consumers, including loans for an indefinite period or repaid in full in recurring periods, should calculate it according to the same assumptions.

The amendment to the Consumer Credit Act specifies these assumptions for:

  • renewable loan agreements other than a credit agreement in a current account,
  • credit agreements other than credit agreements on a current account and a revolving loan for which it is not possible to determine the date or amount of principal repayment or if the date of conclusion of the contract is not known,
  • it also introduces a supplementary assumption regarding situations in which, based on other assumptions, it is not possible to determine the date or amount of payment under a loan.

What is the real annual interest rate?

What is the real annual interest rate?

The actual annual interest rate ( APRC ) is an indicator that should show the relation between the monetary amount that the customer receives from the loan and the costs incurred by him on that account. It enables a meaningful comparison of various loan offers. Relying in this respect only at the nominal interest rate can be misleading. The real interest rate takes into account not only the interest costs, but also other costs that affect the final price of the loan or loans, eg commissions, preparation fees or insurance premiums accompanying the loan. In fact, it is the actual annual interest rate that should show the full cost of the loan.

The Consumer Credit Act contains a definition and method of calculating the APRC, also specifying what costs should be taken into account when calculating this indicator. Importantly, currently every entity offering consumer loans should calculate this indicator in the same way. Applies to lenders such as banks, cooperative savings and credit unions (Credit Unions), loan companies and financial intermediaries.

According to the Act, the actual annual interest rate is the total cost of credit incurred by the consumer, expressed as a percentage of the total loan amount per annum.

The total loan amount is in turn the sum of all cash that the creditor makes available to the consumer under a loan agreement.

The total cost of the loan is, however, all costs that the consumer is obliged to incur in connection with the loan agreement, in particular:

  • interest, fees, commissions, taxes and margins, if known to the creditor, and
  • costs of additional services where their incurring is necessary to obtain a loan, except for the costs of notarial fees borne by the consumer.

The above calculation is therefore not a closed list and any cost related to the loan (apart from notary fees if it was incurred by the consumer), should be included in the calculation of the total cost of the loan.

The calculation of the APRC is set out in Annex 4 to the Act.

The calculation of the APRC is set out in Annex 4 to the Act.

The detailed method of calculating the actual annual interest rate is set out in Annex 4 to the Act on consumer credit. APRC should be calculated in accordance with the mathematical formula included in this annex. When performing these calculations, the creditor should accept the assumptions set out in paragraph 3 and 4 of this annex. The amendment to the Act changed some of them. Here you will find the current text of the Act (Annex 4 to pages 44-46): Act on consumer credit.

The most important additional assumptions specified in this appendix are:

  • it is assumed that the total amount of the loan was paid out immediately and in full when the credit agreement gives the consumer the freedom to make withdrawals;
  • it is assumed that the loan amount has been paid in the earliest contractual deadline and in accordance with withdrawal limits, if the credit agreement gives the consumer essentially freedom to make payments, but provides for credit or time limits in the case of different withdrawal arrangements;
  • it is assumed that the total loan amount is paid using the highest possible fee and loan interest rate applicable to the most common withdrawal mechanisms in a given type of credit agreement if the loan agreement provides for different payment methods using different fees or different interest rates credit;
  • in the case of a loan in a savings and settlement account, it is assumed that the total loan amount has been paid in full and for the entire duration of the credit agreement. If the period for which the loan was granted in the savings and settlement account is not known, the calculation of the actual annual interest rate is based on the assumption that the duration of the loan is three months;
  • the highest interest rate and the highest fees for the loan over the entire term of the credit agreement shall be adopted if different loan interest rates and different rates are offered for a given period or for a given amount.

When should the consumer be informed about the APR?

When should the consumer be informed about the APR?

APRC should be provided in credit advertisements, before the conclusion of the contract, i.e. at the stage of presenting the credit offer to the consumer, as well as in the contract concluded with such a borrower.

As regards advertising, information on the APRC should be provided by the creditor or credit intermediary in a clear, understandable and visible manner on the basis of a representative example. When determining a representative example, the terms of the consumer credit agreement should be specified, on which the creditor or credit intermediary expects to conclude at least 2/3 of contracts of a given type, taking into account the average loan period, the total loan amount and the frequency of contracts of a given type on the market. The creditor or credit intermediary is required to collect relevant data in order to establish such a representative example.

A creditor or credit intermediary before concluding a consumer credit agreement is obliged to provide the consumer with a series of data, including a real annual interest rate, on a durable medium. More on the subject of the borrower’s rights at this stage I wrote here: Consumer’s rights before concluding a consumer credit agreement.

The actual annual interest rate should be determined, based on the information obtained from the consumer about the credit components preferred by the consumer, in particular as to the duration of the loan agreement and the total loan amount.

If the consumer does not provide this type of information, the creditor or credit intermediary may determine the actual annual interest rate on the basis of a representative example.

When a credit agreement is concluded, the APRC must be included in it. This ratio should be set on the day the consumer credit agreement is concluded, including all assumptions used to calculate it. If the provisions of the credit agreement indicate the possibility of changing the interest rate on the loan and the fees included in the determination of the APRC that can not be determined at the time of determination, the actual annual interest rate is based on the assumption that the borrowing rate and charges will remain unchanged at all times the loan agreement.

In the case of amendments to consumer credit agreements concluded before January 1, 2013, the additional assumptions set forth in Annex No. 4 in their current version, i.e. after the amendment, shall be used to calculate the APRC.

In the remaining scope, the Consumer Credit Act has not been changed, so the consumer credit publications published on the blog in 2012 remain valid.

Limitation of Loan – When will it happen?

According to the rules of civil law, property claims (with few exceptions) after a certain time barred. When this happens, the debtor may plead the limitation period and refuse to satisfy the creditor. The bank’s claim resulting from the loan granted may also be time-barred.

The general limitation periods are set out in the Civil Code in art. 118. Pursuant to it, property claims become statute-barred after 10 years, unless a special rule specifies another time on an exceptional basis. However, if property claims are related to running a business, the significance becomes faster, because after three years. The same 3-year period applies for limitation of claims for periodic benefits, e.g. interest.

The limitation period begins to run from the date on which the claim became due. The claim is due when the creditor can demand from the debtor to meet them, and on the part of the debtor such obligation takes place. With monetary debt, in principle, the claim is due when the payment deadline has expired.

The limitation period of the loan.

The limitation period of the loan.

Banks undoubtedly belong to the category of entrepreneurs, and loans that they provide to their clients are associated with running a business. Thus, the bank’s claim resulting from the unpaid loan expires after 3 years from the day it is due. This applies to all loans, both those granted to consumers and entrepreneurs. The purpose or use of the loan is irrelevant.

In a situation where the loan is repaid in installments, the bank’s claims resulting from individual installments have separate limitation periods, calculated from the date when the installments are to be paid in accordance with the loan agreement. The bank’s claim regarding each of the installments will therefore expire on different dates, as the individual installments have different payment terms, and thus other maturities. In practice, when the borrower does not pay the installments in accordance with the adopted schedule, the bank has the right to terminate the loan agreement. As a result of such termination, the repayment of the entire loan borrowed from the bank becomes payable upon the end of the notice period. Remember that termination of a loan agreement of any kind leads to the maturity of the loan, and thus the obligation to repay it. About when the bank has the right to terminate the loan you will learn from here: When can the bank terminate the loan agreement?

The loan term is 30 days, unless the contract provides for a longer period. In the event of a bankruptcy of the borrower, this period is much shorter and amounts to 7 days. The loan agreement is usually terminated in writing. In this letter, the bank indicates the date on which the loan should be fully repaid. The date so marked will be the starting point for the limitation period when the loan was terminated. He will start running from that day.

The limitation period may be interrupted.

The limitation period may be interrupted.

The three-year limitation period for a loan does not mean that in any case, after the expiry of the period counted from the due date, the loan will be time-barred. This would only happen if the bank did not take any action related to the borrower not paying the loan. As a rule, banks take such actions. They consist of:

  • applying to the court for granting the enforcement clause to the bank enforcement title – by taking a loan from the bank, the borrower files a declaration on submission to enforcement, under which the bank will be able to issue such a title;
  • applying to court with a civil suit, if for some reason it would not be possible to issue a bank enforcement title;
  • applying to the court bailiff with a request to initiate enforcement against the debtor – after obtaining a clause of enforceability in court or a judgment or court order.

As a result of each of the above activities, the period of limitation of the loan will be interrupted, and after each interruption the period must run again. At the same time, it should be remembered that the limitation period will not start the run again until the relevant court or bailiff proceedings have been completed. So in simpler terms, if the case is in court or in a bailiff, the limitation period for the loan is red and green. ? When the court proceedings or enforcement proceedings have been completed, the limitation period is moved to the starting line, the green light is given, it starts its run from the beginning and again it must run for 3 years without interruption.

It is possible that a multiple interruption of the limitation period for the same loan claim will occur. After the end of judicial activities and the court issuing the enforcement clause to the bank enforcement title that issued the bank, the limitation period starts running again, but as a result of submitting the application to the enforcement officer, it will be interrupted again. If the execution is not effective and the bailiff dies it because of it, then the limitation period will start running again. However, it may happen that the execution will be initiated again after some time, which will again break the limitation period, etc. In such a situation, the bank’s claim resulting from the loan will expire in an effective manner, if it expires 3 years from the last valid bailiff’s decision to discontinue the execution.

You also need to know that, apart from judicial or court enforcement activities, about which I wrote, the limitation period of the loan will also be interrupted as a result of the so-called. claim recognition by the debtor (borrower). Recognition of a claim occurs when the debtor explicitly declares to the creditor (bank) that he considers the claim to be existing or otherwise unambiguously behaving in such a way that he treats the claim as existing. An example of accepting a claim will be talks or correspondence with the bank regarding the cancellation of loan payments or postponement of their repayment date. Activities of this kind will cause the interruption of the credit limitation period.

Limitation of credit and banking enforcement title.

Limitation of credit and banking enforcement title.

I wrote about the bank enforcement title in detail here: Bank enforcement title – how does it work? This document, after the enforcement clause has been given to it by the court, may be the basis for initiating the enforcement proceedings against the debtor of the bank. Issuance by the bank, i.e. the act of drawing up this document in accordance with the requirements of the Banking Act, does not interrupt the limitation period for credit claims. On the other hand, he interrupts, as you know, the bank ‘s application in the court to give it a declaration of enforceability. The feasibility clause is a judicial statement, certified by an official seal, that the writ of execution may be the basis for enforcement from the debtor’s assets. While the application is being processed by the court in this respect, the limitation period does not run. Although the actions of the court are limited to the examination issued by the bank only from the formal side and theoretically in accordance with the regulations should not last longer than 3 days, but from experience I can say that it is different from that. After the court has issued enforceability clause, the period of limitation should be counted from the beginning, from the date when the court’s decision in this matter becomes legally valid.

What is very important, the court’s enforceability clause does not extend the 3-year limitation period for the loan. In a situation where the bank will claim credit claims based on bte provided with such a clause, the period of limitation is still 3 years.

The situation will be different if the bank asserts the loan claim on the basis of a court judgment or an order for payment or a court settlement. Then the period of limitation of the loan would extend to 10 years in accordance with art. 125 of the civil code. It is not out of the question, if for some reason the bank could not issue a bte in a specific case and pursue its claims on general terms. In practice, in the vast majority of cases, banks do it based on the bte they have issued

How to raise the plea of ​​limitation?

How to raise the plea of ​​limitation?

When the bank asserts its claim on the basis of bte, after the bailiff has delivered a decision on the initiation of enforcement by the bailiff, he may submit a complaint within 7 days to give the enforcement clause bte If the debtor intends to defend himself with the plea of ​​limitation, “shooting from such a “The complaint will not be effective. In such a situation, he should bring counter-enforcement proceedings against the bank. It is in the claim initiating this action that the plea of ​​limitation must be raised and that the court should deprive it of its enforceability on that basis. Importantly, the court does not take into account the statute of limitations ex officio, it can only do so as a result of an allegation raised by the debtor. The counter-enforcement action is brought before the court in whose district the execution is carried out.

The barred debt still exists.

The barred debt still exists.

Remember also that even if the debt resulting from the loan has expired, it still exists legally. The debtor raising the plea of ​​limitation “incapacitates” the creditor (bank) and this can not with the help of the court and bailiff successfully enforce it, but it does not mean that the debt disappeared like camphor. Therefore, the debtor of the bank will be listed in this respect in the Credit Information Bureau and in various debtors’ registers.

The barred debt can also be sold to debt collection companies. In addition, if the debtor repays the loan at the bank without knowing that it is expired, he has no right to demand reimbursement of what he has paid.